Between The Lines – Page 41 – Vaish Associates Advocates

NCLT: Foreign courts cannot intervene in insolvency proceedings

The National Company Law Tribunal, Mumbai Bench (“NCLT”), in the case of State Bank of India v. Jet Airways (India) Limited (decided on June 20, 2019) held that foreign courts cannot intervene or create parallel proceedings for the insolvency proceedings of an Indian company. FACTS The State Bank of India filed an application under Section […]

NCLAT approves the resolution plan submitted by ArcelorMittal in the resolution proceedings in respect of Essar Steel India Limited while modifying the distribution of money to the financial and the operational creditors

National Company Law Appellate Tribunal (“NCLAT”) in case of Standard Chartered Bank v. Satish Kumar Gupta, R.P. of Essar Steel Limited and Others (decided on July 4, 2019), approved the resolution plan submitted by ArcelorMittal India Pvt. Ltd. (“ArcelorMittal”) in the resolution proceedings in respect of Essar Steel India Limited (“Corporate Debtor”) while modifying the […]

Supreme Court: Limitation Act shall be applicable to suits, appeals and applications filed in courts, but does not extend to statutory authorities or tribunals

The Supreme Court, in the case of Ganesan v. The Commissioner, The Tamil Nadu Hindu Religious and Charitable Endowments Board and Others (decided on May 3, 2019), held that Limitation Act, 1963 (“Limitation Act”) is applicable in case of suits, appeals and applications filed in courts, but is not applicable to suits, appeals or applications […]

NCLT Chennai: Creditors having vested interest in corporate debtor should not be a part of the committee of creditors

All provisions cited in this case analysis, unless specified otherwise, refer to the provisions of the Insolvency and Bankruptcy Code, 2016 (“Code”). The National Company Law Tribunal (“NCLT”), Chennai in the case of M/s. Asset Reconstruction Company (India) Limited v. Mr. Gopal Krishna Raju and Others (decided on March 5, 2019), on the basis of […]

NCLAT: Resolution plans must ensure continuity of operations of the Corporate Debtor

The National Company Appellate Law Tribunal (“NCLAT”), in the case of Industrial Services v. Burn Standard Company Limited and Others (decided on May 13, 2019), held that a resolution plan which shall result in closure of the operations of the corporate debtor is against the scope and intent of the Insolvency and Bankruptcy Code, 2016 […]

Supreme Court: Arbitration proceedings once terminated under Section 32 of Arbitration Act cannot be subsequently recalled

The Supreme Court in the case of Sai Babu v. M/S Clariya Steels Private Limited (decided on May 1, 2019), held that once the sole arbitrator terminates the arbitration proceedings under Section 32(2)(c) of Arbitration and Conciliation Act, 1996 (“Arbitration Act”), the same cannot be subsequently recalled. FACTS In an arbitration between Sai Babu (“Appellant”) […]